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10 Turn-offs for Potential Buyers By Joe Szabo, Scottsdale Real Estate Team

May 1, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team As real estate markets continue to recover around the country, buyers are out in full force. Many of today’s buyers make judgments about homes within moments of seeing a listing online. They are also more cautious than before the housing crisis. They want to make sure they’re buying the best house and for the best amount of money. For sellers, that means giving buyers what they want. Though it’s a home first and foremost, it’s also an investment. If you’re planning to put your house on the market, here are ten ways you might be turning off potential buyers.

1. A garage turned into something else.

If you’ve sacrificed the garage for something other than the garage, the trade-off might actually be a turn-off, especially to people where parking is at a premium. Even in the suburbs, most people want a covered, secure place to park their cars. Don’t forget that a garage often doubles as a storage location. The garage houses everything from lawn mower to the excess paper towels and cleansers. If you convert your garage into something else, you’re likely to force a buyer to look elsewhere.

2. A bedroom turned into something else.

Aside from location, one of the first things a buyer searches for is number of bedrooms. Why? Because it’s an important requirement. You might think having a wine cellar, with built-in refrigerators, in your home will make it attractive to potential buyers because it was attractive to you. And while it’s true many people work from home today at least part of the time, that doesn’t mean they want a dedicated home office—especially one with built-in desks or bookcases that would need to be removed. If you must convert a bedroom into something else, make sure you can easily convert it back into a bedroom when you go to sell.

3. Carpet over hardwood floors.

Many people today like hardwood floors. They are cleaner looking, add a design element, don’t show dirt as much, and they’re definitely preferred over carpets for people with allergies. If you have nice hardwood floors, show them off. Let the buyer decide if he or she wants to cover them. It’s easier for a buyer to purchase new carpeting of their choosing than it is for them to get past yours.

4. Over-the-top lighting fixtures.

A beautiful chandelier can enliven a dining room. But it can also turn off buyers who prefer simpler, less ornate lighting fixtures. Did you fall in love with a dark light fixture on a trip to Casablanca? That’s great. And you should use it for your own enjoyment. But when it comes time to sell, replace it with something more neutral.

5. The kid’s room that is a miniature theme park.

Little kids have big imaginations. They tend to love Disney characters, spaceships, super heroes, and such, and their parents are often all-too-willing to turn their rooms into fantasy caves. But the more you transform a kid’s bedroom into something resembling a Disneyland ride, the more you’ll turn off most potential buyers. Your buyer might have teenage children who will see the removal of wallpaper, paint or little-kid-inspired light fixtures as work. If you can, neutralize the kid’s rooms before you go on the market. See the rest here Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

5 Spring Home Maintenance Musts By Joe Szabo, Scottsdale Real Estate Team

April 28, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Nothing renews that feeling of pride of ownership more than attending to annual home maintenance tasks (especially once they are completed and behind you). Now that spring has arrived, it’s time to investigate the condition of your home’s exterior — everything from the roof, gutters, siding, and foundation to the lawn, shrubs, trees and garden. The chore isn’t so bad, and with a plan — and the right tools — you can make short work of many of these common tasks:

Inspecting

Spring is a good time to see what damage winter storms, snow and ice may have done to the exterior of your home. Take this time to inspect the roof; you can do it easily and safely from the ground with a pair of binoculars. Look for loose, curled or missing shingles and any bent or damaged flashing around chimneys, skylights or points where the roof makes contact with the house. Note where repairs are in order and make sure to get them done. Next, clean out your gutters and downspouts. With those spring showers on the way, you definitely want to make sure your gutters are clear of debris so that they function properly. Also use this time to inspect your home’s foundation and chimney; repair any cracks or crumbles. Small fixes now could save you money and headaches later.

Pruning

Your trees and bushes will look and grow a lot better if you remove dead, damaged or overhanging branches. The main thing to remember here is to cut the entire branch off at the branch collar, which is the point where the branch connects to the trunk or another branch. Don’t leave little half branches or big stubs. You’ll get the best results using a handsaw or hand pruner, and it’s well worth investing in an extendable pruning saw with clippers if you have some branches that are just out of reach. Be sure to wear safety glasses and a hard hat if you are cutting branches directly overhead.

Cleaning

There’s certainly no shortage of things to clean outside when the spring season hits. A hose attachment like the HYDE PivotJet Pro can help with almost any cleaning task and lets you get the job done with ease since there’s no bulky or noisy engine to cart around or an electric cord to wrestle. Its powerful spray provides superior cleaning without the risk of damage associated with pressure washers. Use it to clean siding, windows, foundations, decks, gutters, patio furniture, grills, driveways, pool areas, fences, mowers and more. The spray wand with a pivot nozzle head gets into hard-to-reach spots, and a built-in liquid cleaner reservoir can be adjusted or turned completely off as needed. It’s much easier to use than a pressure washer, and much more affordable as well.

Touch-up painting

Exterior paint takes a beating throughout the year, so touching up those areas of your house, fence or shed where paint is starting to fail is a good way to avoid long-term damage and make everything look new and fresh. This isn’t a task you want to revisit every year, so it is crucial to follow the proper steps for prepping, priming and repainting.

Garden prepping

If you enjoy growing a vegetable or flower garden, then you have some prep work to do before it’s ready for seed or seedlings. Removing weeds and leaves, tilling or turning the soil, testing the soil and adding the appropriate fertilizers are just a few tasks you can start doing now. You might want to consider adding a motorized tiller to your arsenal of tools if you plan on keeping a good-size garden every year. If you get a jump on prepping your garden early in the season, you will have more time later to enjoy the fun part — watching your garden grow! Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

7 Things Every Lease Agreement Should Include By Joe Szabo, Scottsdale Real Estate Team

April 10, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Congratulations on buying your first investment property. Smart investors know the best way to safeguard their investment from potential tenant trouble is to craft a solid lease agreement that includes these key things: 1. The basic clauses. Every lease agreement must list the parties to the agreement, which would be you and the tenant, along with the property’s address. You also want to state the term of the lease, which could be month-to-month starting on the first with a particular end date or an automatically-continuing lease that remains in full force and effect. 2. Security deposit clause. Your lease should require the tenant to put up a security deposit that matches one month’s rent or more, depending on the value of furnishings and repair costs if something goes wrong. Some states require you to place the tenant’s security deposit in a separate interest-bearing account and, at the end of the lease, you must give the deposit plus interest to the tenant, less any damages. Make sure to check with your state and judicial regulations and, to save time and money over the long term, check with your real estate attorney to make sure your lease follows the law. Security deposits can be a problem if not handled correctly. 3. Maintaining the premises. The lease should tell the tenant that he is required to maintain the premises, abide by noise control rules and not change the locks without your written approval. You will want to itemize the appliances and furniture that are part of the lease, and note their condition and any other special considerations. Don’t expect a tenant to follow oral requests, such as not parking in the driveway. All requirements must be spelled out in the lease. Also note whether the tenant or landlord will be responsible for utilities. Take the time to clearly write out the details of your agreement. 4. Warning of concealed defect. In some jurisdictions you have a duty to warn of a concealed defect known to you, or a defect that it is reasonable for you to know about. If you know the deck is crumbling and you fail to warn your tenant, then you may find yourself explaining the situation to a judge. Better to disclose the known defect in the lease and, best of all, fix it before the tenant moves in. 5. Subleasing clause. At some point, most landlords have a tenant who wants to sublet the apartment to a friend or stranger. To avoid trouble make sure your lease includes a subletting clause that requires the tenant to obtain your written permission before turning the property over to someone else. When the tenant asks to sublet the property, you will be in a position to decline or accept their offer. But heed this caveat: If you want to agree to having the new tenant move in, then it’s best to end the original tenant’s lease and start the process from scratch with the new tenant. You should go through the entire background check with the new tenant, including a new security deposit and lease. Do not get stuck trying to enforce your original lease against a new tenant who was not a party to the original lease. That situation is a risk you cannot afford. 6. Termination. The best practice is to know your jurisdiction’s rules on terminating a lease and include those details in your lease so your tenant will not be surprised. Terminations occur at the end of a non-continuing lease and also when there is an eviction. Evictions are one of the most dangerous areas for the self-advised investor. You may think you know the rules, but if you improperly notify your tenant of a coming eviction and lock out, you may find yourself on the wrong end of a lawsuit. You can find free eviction paperwork online, but if you are planning to evict a tenant, you would be wise to consult with an attorney. 7. After the tenant leaves. Would you ever hold a tenant’s personal property for unpaid rent? In some states it’s against the law for a landlord to confiscate a tenant’s property and demand rent money in return. Other jurisdictions consider the property abandoned and allow the landlord to dispose of the items. Most states require a landlord to hold the tenant’s property for a short period of time and give notice to the tenant, and some allow the landlord to claim a storage fee for the hassle. The key is to check your local laws and spell out in the lease what you plan to do with personal property left behind by the tenant. Include these important clauses in your residential lease agreement and you will be well on your way toward building a successful real estate investment empire. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

10 Things That Make a Home a Good Home By Joe Szabo, Scottsdale Real Estate Team

February 27, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Buyers spend a lot of time looking at properties online, touring homes on the Sunday open house circuit, and talking to their real estate agent. They’re laser-focused on finding the best home that meets their needs. The problem is, buyers sometimes don’t take the long view of a property. They’re only looking at a home as a potential buyer — and not as someone who, years down the road, may also have to sell the property. Given that homes are such a big investment, there should be a little inside your head, picking away at your options and decisions. As the home buying market starts to heat up again, here are ten things you should consider when choosing your next home.

1. Location, location, location

Perhaps nothing is more important than the three L’s, and there’s a reason why it’s said three times. Location is extremely important when it comes time to sell. You can have the worst house in the world with the ugliest kitchen and bath. But put it on a great block or in a good school district, and your home will be coveted. Location location location matters on so many different levels. At the highest level is the town where the house is located, then the school district, then the neighborhood and the block — right down to the location of the lot on the block. Keep all of this in mind when shopping. Also remember that while real estate markets rise and fall, no one can take a great location away from you.

2. The school district

The school district is right up there on the list of what’s most important to many buyers. It’s not uncommon for buyers to start their search based solely on the school district they want to be in. Parents want their kids to go to the best school, which can drive up prices of homes in those districts. Even though you might not have children, buying a home in a good school district is always smart. If the schools are desirable, homes tend to hold their value. As a homeowner, you should always be aware of how the schools are doing, not unlike being aware of your roof’s condition, the neighborhood development or city government.

3. The home’s position on the lot

Where the home sits on the lot in relation to the street or the overgrown oak are key elements in picking out a home. In the case of a condo, an end unit vs. an interior unit is a key consideration. You may have chosen the most beautifully renovated home in the best school district and figure all is good. But if the main living areas are shaded by a neighbor’s extension or the master bedroom looks into the neighbors’ family room, you may have a location problem. Light or privacy may not be a hot button for you, but chances are, they might be concerns for a future buyer.

4. Crime

It’s a good idea to check the latest crime figures for a neighborhood. It can give you a good snapshot about the number and severity of crimes over a time period. So much information is online nowadays that when you find your perfect home, a quick Internet search on the area should provide you with the much-needed information. Most municipalities post their police blotters or crime statistics online these days. Don’t freak out if you notice more crime than what you’d have expected. Crime, especially petty crime, is everywhere. If you’re new to the area, consult with your real estate agent if you have concerns.

5. Walkability

More than ever, ‘walkability’ is becoming a key factor in the search process. There are entire websites, apps and algorithms that help people figure out how walkable their future home is. As a matter of fact, Zillow even has a Walk Score for most homes. As people get out of their cars and slip into their Keds, they want a home in a walkable neighborhood. People put high value on the ability to walk to a store, school, work or public transportation. The more we move away from cars and the more we see invested in public transportation over the coming decades, the more of a huge value-add walkability will become.

6. The neighborhood’s character

You may have found the absolute most perfect home, on the best block, in the best school district and on a great lot. But there could be circumstances outside your control that may give you pause — specifically, the character of the surrounding neighborhood. Check out the area late at night, early morning and in the middle of the day. See if there are any odd weather or traffic patterns and try to observe some of the neighbors. You may even go so far as talking to some neighbors. It’s important to walk around, open your eyes and ears and make sure there isn’t anything you’re overlooking. That next-door neighbor practicing drums in the garage at 9 p.m. could be a source of immediate neighbor conflict. Go into it with eyes wide open.

7. Don’t buy the best house on the block

Simply put, avoid buying the best house on the block because there may not be any room for your investment to grow (unless you physically have the house moved to a better neighborhood). It’s better to buy the worst house on the best block, because you can improve the house to add value to an already great location.

8. Is it a fixer-upper?

If you’re buying a fixer-upper, make sure you understand what you’re getting into. Did you set out to buy a home that needed work? Or does the home just happen to be in the most desirable neighborhood, the block of your dreams? Do your homework upfront. If you want to build an extension or add another story to the property, make sure it is within local zoning or building codes. Have the property inspected so that you know exactly what you’re getting yourself into. Sometimes, what appears to be a simple kitchen needing cosmetic work turns out to be a huge project. Ask yourself repeatedly if your life can support a home renovation. Not only does a renovation take money, it takes time, energy and emotional stress.

9. Will the home hold its value?

A good real estate agent who’s been working the neighborhood for some time can vouch for the long-term value or investment potential of the property. But be sure to find ways to add value, or at least be certain the home will hold its value. The market may be strong when you purchase, but ask yourself, “Am I in a seller’s market?” “What would happen to this property if the market changed tomorrow”? Check out the median home value in the neighborhood as it compares to neighborhoods around it. The Zillow Home Value Index gives you one, five, and 10-year snapshots of how home values have gone up or down in neighborhoods and cities.

10. Taxes, dues and fees

Many people overlook the monthly fees associated with homeownership. Nearly every property will have taxes, and any sort of planned community or homeowners association (HOA) will have regular assessments. Be sure that the amount of property tax and assessments are clear from the get-go. If in doubt, go to city hall or do research online. If you’d be buying into a condo complex, be sure to get your hands on the meeting minutes, financials of the HOA and the condo documents. Any mention of changes coming down the pike? Does the HOA seem well funded? It could take one quick $10K assessment to immediately affect property values if you need to turn around and sell your new home. And any uncertainty about the building, its integrity or the financials could scare off buyers when it’s time to sell. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

The Anatomy of a Real Estate Purchase By Joe Szabo, Scottsdale Real Estate Team

February 24, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team The steps, process and details of buying real estate can be intimidating and overwhelming to the first-time (and even the veteran) buyer. If you’ve never done this before, you likely have no idea how the process begins or what to expect. Every market does things a little differently, and you should ask your real estate agent how the process works in your community. For the most part, however, the transaction should follow these seven steps.

Make an offer and write up a contract

When you love a place and think it could be your future home, it’s time to take a serious and legally binding step toward purchasing it. This means writing up a purchase offer and signing a real estate contract. Yes, at this early stage of the game, you need to sign a legally binding contract. By signing on the bottom line, you’re committing to moving forward on the purchase with the seller. There are contingencies, or “outs,” to many real estate contracts, however. Most contracts will be contingent on inspections, disclosure review, loan approval, appraisal or other matters. These “contingencies” are ways to exit the contract should something not go as anticipated.

Disclosure review

By law, the seller must provide the buyer with disclosure documents, a preliminary title report, copies of city reports and any specific local documents. For example, in California, an earthquake hazards report or a geological survey is required. In areas of the South, near the Gulf or on a riverbed, flood maps and floor reports should be provided to the buyer. Aside from any mandated reports, the seller needs to disclose to the buyer any issues or flaws with the property that would affect the value or habitability. Generally, sellers are required to answer a series of yes or no questions about the property, the neighborhood and their experience there via a transfer disclosure statement. If there were leaky windows in the past, violations from the city, work done without permits or plans for a major nearby development, the seller is required to disclose them. This provides additional color about the property you’re considering purchasing. If there are major flaws, the seller’s agent would likely have brought them up before the contract signing. However, if something is disclosed here that is a negative factor for you, this is your out.

Appraisal

Most buyers will put a certain amount of money down toward the purchase price. The balance will come as a loan from the bank. But the bank isn’t going to hand over that money without doing its due diligence. The appraisal is the financial institution’s way of making sure the contract price is the right price. The bank sends out a third-party appraiser, which the buyer pays for, to confirm that the contract price is in line with the neighborhood’s comparable sales. If it’s not, the bank can deny the loan or change the terms.

Inspections

A home is a huge purchase — likely the biggest of your lifetime. And so, as part of the real estate contract, you have the right to a property inspection. The most common is a “general” property inspection. The inspector will check the home from the foundation to the roof and investigate all major systems and components. You, as the buyer, should follow alongside the inspector to learn more about the property. You’ll want to know about the components (such as the water heater) and have a plan in place for maintenance. As a result of the general property inspection, the inspector may suggest having a specialist come out. This could be a roofer, electrician, HVAC specialist or even an engineer. Listen to the inspector and have any follow-up inspections as necessary. This is your one chance to approve the property from top to bottom. If issues arise, you might go back to the seller and negotiate some sort of fix or credit. If something major arises and it’s just not what you signed up for, you can exit the contract via your inspection contingency.

Loan approval or commitment

In addition to making certain the property appraises at no less than the contract price, the bank will want to fully approve your credit, debt and income history. It’ll also want to approve the property’s preliminary title report to make sure there aren’t any liens recorded against the property that might affect its value. The bank can take up to a month to do its full review, which should result in a loan commitment or full loan approval. Once that’s completed to the bank’s satisfaction, you’re guaranteed a loan, and you’re one step closer to closing.

Final walk-through

A day or so before closing, you’ll want to walk back through the property to make sure it’s in the condition it was when you last saw it. You want to be certain that the seller didn’t remove any fixtures, make modifications or leave behind garbage or debris. You also want to make sure any fixes you negotiated with the seller were indeed completed.

The closing

Depending on the market, the closing may happen at an attorney’s office or with an escrow officer at a title company. In some jurisdictions, the buyer and seller don’t ever meet. Each goes in to sign their closing papers separately, and the property closes in the background. In others, the buyers and sellers sign the closing documents together. Regardless of how a closing happens, if you’re a buyer and getting a loan, plan on signing dozens of documents at closing. You’ll have to show up to the closing with a photo ID, as your signature will be notarized. Prior to the closing, your real estate agent, attorney or escrow officer should send over a closing statement to review. This will spell out your final closing numbers and what money you need to bring to closing. The funds can be wired in or paid with a cashier’s check on closing day. Be sure to ask for the statement early, so there aren’t any last-minute surprises. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

Combined Value of US Homes to Top $25 Trillion in 2013 By Joe Szabo, Scottsdale Real Estate Team

January 23, 2014 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team If you wanted to buy every single home in the country, all at once, you’d need to be prepared to spend more than $25 trillion, according to Zillow. The overall cumulative value of all homes in the U.S. at the end of 2013 is expected to be approximately $25.7 trillion, up almost $1.9 trillion, or 7.9 percent, from the end of 2012. Gains were calculated by measuring the difference between cumulative home values as of the end of 2012 and anticipated cumulative home values at the end of 2013. The gain in cumulative home values is the second annual gain in a row, after home values fell every year from 2007 through 2011. Between 2007 and 2011, the total value of the U.S. housing stock fell by $6.3 trillion. Over the past two years, U.S. homes have gained back $2.8 trillion, or about 44 percent of the total value lost during the recession. “In 2013, the housing market continued to build on the positive momentum that began in 2012, after the housing market bottomed. Low mortgage rates and an improving economy helped bring buyers into the market, boosting demand and driving prices up,” said Zillow Chief Economist Stan Humphries. “We expect these gains to continue into next year, though at a slower pace. The housing market is transitioning away from the robust bounce off the bottom we’ve been seeing, toward a more sustainable, healthier market. This will result in annual appreciation closer to historic norms of between 3 percent and 5 percent.” Real estate in the United States is hugely valuable. The $25.7 trillion total value of the country’s entire housing stock is more than the combined gross domestic products (GDP) of China and the U.S. in 2012. Homes in the New York and Los Angeles markets alone account for more than $4 trillion in combined value. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

Merry Christmas! from Joe Szabo and the Scottsdale Real Estate Team

December 23, 2013 Joe Szabo

Merry Christmas from all of us at Scottsdale Real Estate.

We hope your holidays are unforgettable!

How to Negotiate Repairs After a Home Inspection By Joe Szabo, Scottsdale Real Estate Team

December 19, 2013 Joe Szabo

By Joe Szabo, Scottsdale Real Estate Team Most would-be buyers and sellers believe the real estate “deal” is negotiated at the signing of the contract. By that point, the counteroffers have been made and the back and forth has happened, so it’s easy to assume that the deal will go on auto-pilot until closing. The reality, though, is that in many cases, the deal-making and negotiations only start at the contract signing. Even in more competitive real estate markets, negotiations still happen once in escrow. For example, if you’re a buyer, the property inspection or sellers’ disclosures — maybe the HVAC system has some issues — may prompt you to seek a credit. But where do you go from there? Here are three tips for negotiating repairs after a home inspection.

1. Ask for a credit for the work to be done

The sellers are on their way out. If the property is moving toward closing, they’re likely packing and dreaming of their new home. The last thing they want to do is repair work on their old home. As a result, they may not approach the work with the same conscientiousness that you, as the new owner, would. They may not even treat the work as a high priority. If you take a cash-back credit at close of escrow, you can use that money to complete the project yourself. Chances are you may do a better job than the seller, too. Finally, if you get the credit, there will be less back and forth to confirm the work has been done.

2. Think ‘big picture’

If you know you want to renovate a bathroom within a few years, then you likely won’t care that a little bit of its floor is damaged, that there’s a leaky faucet or that the caulking needs to be redone. These things will get fixed during your future renovation. However, the repairs are still up for negotiation. Asking the seller for a credit to fix these issues will help offset some of your closing costs.

3. Keep your cards close to your chest

A good listing agent will walk the property inspection with you, your agent and the inspector. Revealing your comfort level with the home or your intentions, in the presence of the listing agent, could come back to haunt you in further discussions or negotiations. For example, if you mention you’re planning a gut renovation of the kitchen, the sellers will certainly hear about it. And they’re going to be less likely to offer you a credit back to repair some of the kitchen cabinets. Also, if the listing agent hears you tell the inspector that you love the home so much you don’t mind replacing the HVAC system, the agent will surely let the sellers know about that.

Eyes wide open

A word of caution: You should never complete the original contract assuming that you can negotiate more as a result of the property inspections. If it’s a competitive market and the property inspection comes back flawless, there’s nothing to negotiate. If you attempt to negotiate anyway — to recoup what you lost in the initial contract negotiations — you risk alienating the sellers and possibly giving them an incentive to move on to the next buyer. You need to go into escrow with your eyes wide open. A real estate transaction is never a done deal until all the money has been wired in and the deed transferred. Prior to signing the real estate contract, your main concern is that you may be competing with other buyers. Once you’re in escrow and doing inspections, however, it’s just you and the sellers. Stay on your toes. Otherwise, you may risk losing out on further viable negotiation opportunities, which could lead to buyer’s remorse. Please note that this Scottsdale Real Estate Blog is for informational purposes and not intended to take the place of a licensed Scottsdale Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Scottsdale, The Szabo group delivers experience, knowledge, dedication and proven results. Contact Joe Szabo at 480.688.2020, info@ScottsdaleRealEstateTeam.com or visit www.scottsdalerealestateteam.com to find out more about Scottsdale Homes for Sale and Estates for Sale in Scottsdale and to search the Scottsdale MLS for Scottsdale Home Listings.

Happy Thanksgiving! from Joe Szabo and the Scottsdale Real Estate Team

November 27, 2013 Joe Szabo

October 2013 Paradise Valley Arizona real estate market update by Joe Szabo, Scottsdale Real Estate

November 13, 2013 Joe Szabo

Happy November! It looks like the real estate market has cooled off just like the weather. The good news is that the median home price in Paradise Valley Arizona has increased from $990,000 to $1,150,000 since September 2013; this is up a whopping 24.3% since October 2012. New listings are up from September with 76 listings as opposed to 69 from the previous month. New contracts and closed sales are down 11.4% and 21.6%, respectively. The market is starting to balance out making it a great time to buy or sell in Paradise Valley.

Market report Paradise Valley October 2013

Considering a purchasing or selling a property in Paradise Valley? Take advantage of the great market conditions and get your home listed for sale. We hope that you enjoy reading and analyzing the Paradise Valley Luxury Home Report and should you have any questions or comments, please feel free to Contact Joe Szabo at 480.688.2020 or email him directly at Joe@ScottsdaleRealEstateTeam.com or Joe@AZLuxuryHomes.com. You can also visit https://www.AZLuxuryHomes.com or https://scottsdalerealestateteam.com to find out more about Paradise Valley Homes for Sale and Estates for Sale in Paradise Valley and to search the Paradise Valley MLS for Scottsdale Home Listings. Please note that this Paradise Valley Real Estate Blog is for informational purposes and not intended to take the place of a licensed Paradise Valley Real Estate Agent. The Szabo Group offers first class real estate services to clients in the Scottsdale and Paradise Valley Greater Phoenix Metropolitan Area in the buying and selling of Luxury homes in Arizona. Award winning Realtors and Re/MAX top producers and best real estate agent for Luxury Homes in Paradise Valley, The Szabo group delivers experience, knowledge, dedication and proven results.

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